Analysis of The Rio Tinto limited Company

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Analysis of The Rio Tinto limited Company

The Rio Tinto limited is a company whose work is to supply grocery services to the fast moving industrial markets, the consumer goods and also the packaging products. The Rio Tinto focuses on beverage packaging, fiber making and also does box and corrugated sheet manufacturing. Some of the corporate social responsibilities of the Rio Tinto are: environmental responsibilities which include recycling, management of waste and the management of water. The other responsibility is the community involvement through employing of local workers. The corporate social responsibility also aids in the retention and recruitment of the company’s workers.

When did Rio Tinto join Global Compact?

Rio Tinto joined the Global Compact on 25 April 2016.

According to the United Nations Global Compact, my company, the Rio Tinto would wish to follow two principles which are: Principle 1 which states Business should support and respect the protection of internationally proclaimed human rights and Principle 7 which states that Business should support a precautionary approach to environmental challenges.

The negative business practice for the protection of human rights is that the company has traces of indirect slavitude. This is evident in that the worker’s rights are not looked upon and there is delay in their payments or at times there may be no payments thus treating the workers as slaves indirectly and by promising to increase their wages and salaries which is not taken into much consideration. The Universal Declaration of Human Rights clearly states that, “No one shall be held in slavery or servitude; slavery and the slave trade shall be prohibited in all their forms.”1

Foot note

  1. Religion and Ethics – Ethical issues “The law against slavery” BBC 2008.

On the other hand, the company has greatly put into consideration three approaches to controlling the environmental challenges. They include: recycling action of the materials. This is very useful in that it reduces the environmental pollution. The other action is through the management of waste. This has been greatly emphasized by our company and it has created a great impact to the enforcement of a conducive environment. Also there is the water management, this is greatly emphasized since in Australia there is water shortage thus there is great need to conserve and manage the little available water. The water that is conserved is used later in the process of production thus reducing costs.

The positive lesson learnt from the protection of human rights and protection of the environment is that firstly, human rights should be greatly emphasized and should be put into first consideration by treating the workers with equality and also looking into their requests. Once this is corrected the workers needs will have been greatly solved. Secondly, the other positive lesson learnt is that care should be done to the environment since a well-managed environment will be very conducive for the operations of the company and also there will be minimal environmental pollutions. On the other hand, there are the negative lessons learned some of which include: that harsh treatment of workers is not always necessary and mismanagement of the environment should be avoided at all times in order to have a conducive working environment.

There are several recommendations I would like to make based on the two principles that the company has chosen. The recommendations include: based on the environment management; the company should use fabric filters that will enhance the reduction of metal emissions which will reduce the traces of the dangerous CEPA toxics to the environment from the steel manufacturing. The company should aim at proper water and waste management. This is through putting up of waste water treatment plant which are approved by the relevant regulatory authorities. This function to remove toxics and other harmful substances that make the water unconducive to use. After the waste water has been purified it can then be collected and reused in the manufacturing process. The company should aim at achieving more than 90% water reuse. The company should put in place programmes for monitoring the environmental effects through proper management of waste by creation of a waste disposal site which will include both solid and liquid disposal site to ensure a clean environment. There can also be environment management training to the workers of the company. According to the environmental management systems “Each facility should develop, implement and maintain an environmental management system that has the requirements of a recognized standard,”2 based on human rights protection, I would recommend that the company puts in place a strong position for Human Resource Officer. This position will ensure that the rights of workers are looked upon and are respected and also the Officer will put the company into its toes when the worker’s salaries need to be increased. Another recommendation is that there should be continued respect of human rights both by the company’s officials and the other employees. Through this respect no human right will be violated.

What are the Impacts of these recommendations to the stakeholder?

Once the recommendation for environmental management is put in place, the environment will be conserved and no emissions from the factory will affect the people living around our company. The dangerous fumes when not controlled could lead to a degradation of the ozone layer leading to high chances of global warming hence is a major factor to control the environment. Through waste and water management there will be minimal pollution of the water sources Example Rivers thus contribute to a health environment for survival of people and the aquatic animals. Based on recommendations for human rights protection, the rights of the stakeholders will be greatly respected and no violations will be reported. This will increase the number of the company’s stakeholders and also the present stakeholders will be motivated to remain part of our company.

Foot notes

  1. Canadian Standards Association, “Environmental Management Systems” 1996.

What are the benefits, challenges and risks for the key stakeholders?

The stakeholders will benefit through the addressing of their rights hence they will not be harassed by the company officials. The stakeholders will have the courage to express their rights. This will increase the stakeholder membership of our company. This will in turn increase the revenue of our company and will lead to profits in the company. On the management of environment, there will be minimal or no pollutions hence it will be conducive to inhabit the areas surrounding our company and there will be no conflicts between the company and the people living near the company’s factory due to waste disposals. Once the stakeholders are happy, they will in turn influence other stakeholders to try out our company, this will earn our company popularity. The challenges that may be faced by the stakeholders include their voice of action may not be heard in the company thus may be neglected. The risks may be they may not fully trust our company.


Following these recommendations, the company will be in a perfect position to win the trust of both the employees and the stakeholders at large. The company will have followed the United Nations Global Compact principles.


  1. Religion and Ethics – Ethical issues “The law against slavery” BBC 2008.

  2. Canadian Standards Association, “Environmental Management Systems” 1996.